Nicosia: The market outlook for the summer season remains positive, despite inflationary pressures, according to Marios Antoniou, Secretary of the Retail Trade Association. It is noted that the Harmonized Index of Consumer Prices of the Statistical Service rose in July by 4.4% compared with July 2025, and by 0.7% compared with June 2026. More specifically, in the Food and Non-alcoholic Beverages category, the year-on-year increase stood at 4.54%, a 6.98% rise was recorded in Housing, Electricity, and an 11.95% rise in the Restaurants and Accommodation Services category. At the same time, a 5.24% fall was recorded in the Clothing and Footwear category.
According to Cyprus News Agency, consumers appear to have adjusted the way in which they shop, with Marios Antoniou, Secretary-General of the Cyprus Retail Trade Association, and Executive Director of the Supermarket Association, Andreas Hadjiadamou, noting that consumers are more cautious in their purchases, searching for special offers while avoiding unnecessary spending.
In statements to CNA, Antoniou stated that, despite inflation and the decline in consumers' purchasing power, the outlook for the retail sector remains positive. He noted that "at least in terms of footfall and turnover, we are performing very, very well. Because when you're talking about eight months, it means you're now getting an indicative picture of how the whole of 2026 is shaping up."
He added that "both July and August performed extremely well, both in terms of footfall and turnover, across the entire retail sector." He also said that people are very well-informed and well-prepared and, in recent years, have, as he put it, "made great strides as consumers", explaining that they now make smarter choices when shopping.
He added that the overall positive picture of the market is also bolstered by the significant number of foreign nationals who now reside permanently in Cyprus and do their shopping here. He referred in particular to Israelis, Russians, and Ukrainians living and working in Cyprus, noting that their consumption has a positive impact on the market.
He also pointed out that the expansion of the consumer base is one of the reasons why the market continues to grow, and there is interest both from retail chains wishing to operate in Cyprus and in the creation of new shopping centres.
With regard specifically to shopping at supermarkets, the Executive Director of the Supermarket Association, Andreas Hadjiadamou, noted that the majority of consumers now limit their shopping to what they actually need. "Most consumers are now making sensible and comprehensive purchases and are not making unnecessary purchases," he said, attributing the change to the geopolitical developments of recent years and the resulting economic impact on prices and consumers' purchasing power.
He added that visits to supermarkets are now more frequent, although he noted that consumers are not buying the same large quantities. "They aren't stocking up as much as they used to," Hadjiadamou said. He also noted that consumers are no longer limiting themselves to a single supermarket but are exploring the market and looking for special offers at different shops. As Hadjiadamou explained, consumers' shopping trips are no longer limited to just one supermarket, as they used to be, or even one or two, but they take advantage of special offers and may make a round of the supermarkets, starting with a large retail chain and ending up at local shops, making full use of the offers available to them.
He also described that consumers are more careful in their shopping, due both to inflation and to developments in the region and their impact, amongst other things, on fuel prices. As he said, "supermarkets are making efforts to keep prices in check by engaging with suppliers and partners and seeking agreements that will allow for greater price stability."
Antoniou noted that during the summer period, the market is driven mainly by three factors. "One factor was the summer sales, which boost market activity; the second was tourism; and the third pillar is purchases of school supplies." He even described school supplies as one of the strongest categories of "non-food" products, noting that, following the Christmas period, they represent a particularly strong segment for the retail sector.
He added that this particular market begins to pick up from August and peaks in early September. "It starts in August, peaks in the first week of September - as people return from their holidays - and continues until the start of the school year," he said. According to Antoniou, there is a wide range of prices and choices for consumers in this particular category.